Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and the amount of federal income tax withholding are as follows.FederalGrossIncomeEmployee Filing Status Allowances Income WithholdingSarahMarried4$10,000 $962$8,000$1,362SingleKevinSingle$7,000 $357Lemur's payroll deductions include FICA Social Security at 6.2%, FICA Medicare at 1.45%, FUTA at 0.6%, SUTA at 5.4%, federal income tax as previously shown, state income tax at 5% of gross pay, and 401(k) employee contributions at 2% of gross payRecord the entry for the employee payroll on December 31. If required, round your answers to the nearest whole dollar. If an amount box does not require an entry, leave it blank.Dec. 31 Salaries Expense25,000 ✓Joe1✓FICA Social Security Tax Payable ✔FICA Medicare Tax PayableFederal Income Tax PayableState Income Tax Payable401(k) Retirement Plan Payable✓Salaries PayableV✓✓✓2,681 ✓1,2505001,550363

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...

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For tax purposes, assume that the maximum taxable earnings are 118,500 for Social Security and 7,000 for the unemployment tax and that all earnings are taxable for Medicare. For the payroll register for the month of November for Shelby, Inc., determine the taxable earnings for each employee.
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